Leading Economic Indicators

http://wsj-us.econoday.com/byshoweventfull.asp?fid=443892&cust=wsj-us#top

Released on 12/17/2010 10:00:00 AM For Nov, 2010


Highlights

A slowing in delivery times takes over as the number one plus in the Conference Board's index of leading economic indicators which is pointing to accelerating economic growth ahead.

The LEI jumped 1.1 percent in November following two solid half percentage gains in October and September.

Moving to second place, at least for November's report, is the spread between long and short rates -- the wider the spread, the greater the indication for growth.

Given the jump the last two weeks in the 10-year Treasury yield, December's spread appears certain to widen. The spread has long been the number one plus in this series reflecting the Federal Reserve's near zero policy rate.

A decline in jobless claims is a big positive for November as it may be for December.

Growth in money supply is a plus, and keep an eye on this one for the expansionary effects of quantitative easing. Stock prices and the factory workweek are also pluses as are imputed readings for consumers goods output and capital goods output.

Deliveries steal November's report yet it's uncertain whether they will remain a top positive. Goods in short supply are popping up in the monthly Institute For Supply Management reports but not in number, while delivery times in December's Empire State and Philly Fed reports were mixed.

Market Consensus Before AnnouncementThe Conference Board's index of leading indicators jumped 0.5 percent in both October and September. Six of the 10 components advanced in the latest month. A wide yield spread continued to be the biggest positive though to a smaller degree given declines in long rates, The report also included a 0.1 percent uptick in the coincident index, a small gain that follows two unchanged readings in a reminder of the economy's mid-year soft patch and the contrasting acceleration now underway.

DefinitionA composite index of ten economic indicators that should lead overall economic activity. This indicator was initially compiled by the Commerce Department but is now compiled and produced by The Conference Board. It has been revised many times in the past 30 years - particularly when it has not done a good job of predicting turning points.

The Gift of Home

If your are on the “Nice List” this year, perhaps someone may gift you the down payment for a new home. Most mortgage programs allow for the homebuyer to receive a gift from a relative (or person with an established relationship) for the purpose of purchasing a home.

FHA home loan programs require a minimum 3.5% down payment, and the entire down payment may be a gift. The homebuyer and the gift donor must sign a “gift letter,” and the donor must document that they have the funds to provide the gift. This requirement can be satisfied with a copy of the donor’s bank statement.

On conventional loans, Fannie Mae and Freddie Mac allow for gifts, but will require the homeowner to have a down payment of at least 5% of the sales price that comes from their own funds. The remainder of the down payment can be a gift. However, some upcoming guidelines from Fannie Mae will allow for the entire down payment to be a gift.

Also, it is possible to gift the equity of a property and not just cash. For example, if parents want to sell a property to their son or daughter, they can gift any amount of equity that they want as part of the transaction so as to reduce or eliminate their child’s contribution to the down payment.

While Santa Clause may not be a legitimate gift donor, being on the “Nice List” of ones relatives may improve chances for receiving a gift for the down payment of a new home this Holiday Season.

Chris Mozilo, CMB

Chris Mozilo NMLS# 183726; AZ LO-0912308; BKBR-0115591; CA-DOC 183726

The most expensive homes in Arizona

TOP 10 REAL ESTATE DEALS
We thought we would do something fun and look at the 10 Most Expensive Homes on the Market today.

Cameldale Way
Paradise Valley, AZ

7 bedroom 11 bath
20,000 sq. ft.

$13,900,000

Seller's Loss is Buyer's Gain!

This partially completed, one of a kind contemporary masterpiece, designed by world renown architect is perched on almost 4 acres in the shadow of Camelback Mountain in the heart of one of Paradise Valley’s most exclusive areas known as Cameldale. Seller has invested over $20 million in this property and is willing to make a deal!

MLS#4465022 Russ Lyon Sotheby's Int'l

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Cameldale Way
Paradise Valley, AZ

4 bedroom 6 bath
12,587 sq. ft.

$14,458,7210

Rare 5 Acre property built by
Cal Christensen

Location? ICONIC. Property? MAGNIFICENT. Backdrop? CAMELBACK MOUNTAIN. Rare 5 acre estate, provides ultimate privacy in Arizona's most prestigious neighborhood. A collaboration of artistry results in an art-infused retreat of a grand scale: Cal Christensen (builder), Architecture Plus (design), Trutza Landscape Architecture, (Walter Spitz) Creative Design Lighting. 30' foot open beam ceilings; AZ moss stone, copper, quartz & flagstone accents. Epicurean kitchen, billiards room, Italian travertine, grand fireplaces throughout, library + office, fully appointed exercise room. Vistas to Four Peaks & Superstition Mtns, while up close & personal with Camelback Mtn. The ultimate in luxury, a house that achieves the goal of being ''home.''

MLS#4449244 Realty Executives

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vergordon

Invergordon Rd
Paradise Valley, AZ

6 bedroom 10 bath
15,000 sq. ft.

$14,500,000

4.5 Acres...Tuscan Style Home only 120 days to completion

Home is approx 120 days from completion.Price is for home completed but buyer can buy''as is'' and complete work themselves.This beautiful nearly complete Tuscan style estate is located on appx. 4.5 hillside acres in one of Paradise Valleys most sought after areas.

MLS#4286612 Russ Lyon Sotheby's Int'l

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Hummingbird ane
Paradise Valley, AZ

5 bedroom 7 bath
16,400 sq. ft.

$15,000,000

One of the last 2.5 acre Mountain Retreat Estates ready to build a French Chateau

One of last 2 1/2 acre mountain retreat estates - Hand selected - capturing panoramic forever city and mountain views. Glamorous Quartz Mountain ready to be framed home-site (for a 16,400 sqft) 'French Chateau'. Backing against the hillside preserves for protection and afternoon shade; designed for a six car garage plus a 70 plus feet of hill-side roundabout. The owner has invested well over 5 million; you may start building right away, plans, permits and lot improvement is all included. We're able to complete this custom Chateau within 15 months. Appraised between $15 - 20 million. Save 4 years of planning, negotiating, fine tuning cost analysis and layouts.

MLS#4324096 Russ Lyon Sotheby's Int'l

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Paradise View Drive
Paradise Valley, AZ

12 bedroom 12 bath
52,000 sq. ft.

$15,000,000

A House that is more like a Palace than a Home

A once in a lifetime opportunity to own a property that is irreplaceable for many reasons. On a leveled hill with the best views possible: lights of 3 cities, major landmark mountains of Camelback, South Mountain, and Phx Mountain preserve; heighth restrictions that can't be duplicated; country club-like grounds with Olympic size pool, tennis, and over-size poolside kitchen; 3 parcels; a retaining wall that would cost millions to build today, and a house that is more like a palace than just a home. It needs renovations but is priced far, far below replacement costs and could be brought to fit today's life style for the rich and famous.

MLS#4403988 Russ Lyon Sotherby's Int'l

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Happy Valley Road
Scottsdale, AZ

7 bedroom 9.5 bath
27,000 sq. ft.

$15,000,000

30+ Million in replacement cost
Just over 19 acres, horse privileges, indoor tennis court

Horse privileges - NO HOA - Just over 19 acres - Sub-dividable Land. A private 'world class' residence beholding depth, character and endless onsite amenities. Well secured behind its scenic iron gates. It's million dollar private driveway winds up at a circular center court, room for plenty of parking and an 9+ car garage. This residences elaborate details include extensive hand carved pillars, built-in library, gourmet kitchen, ballet and dance quarter, signature indoor tennis court, mother of pearl swimming pool, mermaid style jacuzzi, authentic desert botanical garden and a French Victorian courtyard. Convert the indoor tennis court into a 80+ car museum, basketball court or a private auditorium. Owner may entertain your trade.

MLS#4469718 Russ Lyon Sotheby's Int'l

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Saguaro Road
Paradise Valley, AZ

4 bedroom 9 bath
14,304 sq. ft.

$16,500,000

Custom Built with 20' Ceilings

Located in PV's finest area, this was custom built for the owner on appx 5 gated acres using only the BEST materials & exceptional elegance in design & comfort. Timeless ambiance flows throughout the LR, FR & great rm. First-rate craftsmanship of the library, office, chef's kit, butler's pantry & 2BR guest suite w/LR & kitchenette. Master incl marble baths & extra-large walk-in closets. Refined living continues outside w/cov'd patios, several FPLs, BBQ, pool, pool bath & tennis ct. Away from the main house is a private studio w/liv rm with 20' ceiling, oversized FP, office, kitchenette & bath. Large motor court & garages for 4 vehicles.

MLS#2930850 Coldwell Banker

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Saguaro Road
Scottsdale

8 bedroom 9 bath
14,215 sq. ft.

$17,900,000

Exquisite Property - elegant but designed for comfort

This exquisite property is elegant yet designed for comfort. Be it intimate family gatherings or formal affairs for a large crowd, this home has the spaces necessary for gracious Arizona living. From the wood paneled office and dining room to the spacious kitchen with counter to ceiling Hopes windows; the level of detail is second to none. Lovely imported limestone flooring and fireplace surrounds; wide plank walnut flooring, gorgeous cabinetry, and marble and limestone counters are just some of the fine finishes you would expect in this Michael Smith design. Heated pool, two spas, and lighted tennis court with ramada add to the resort atmosphere. Integral color plaster exterior and Bergoff designed landscaping add a European flavor to the overall feel of this one of a kind estate.

MLS#4496257 Realty Executives

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Mockingbird Lane
Paradise Valley, AZ

7 bedroom 10 bath
17,015 sq. ft.

$24,900,000

Ultimate Luxury in a Sumptuous
5 Acre Estate

Experience ultimate luxury in this sumptuous 5 acre estate with 35,000 sq.ft.under roof & 25,000 sq.ft. ac/heated. Incredible amenities include flooring of 6 ft. marble slabs from Italy, library with $350,000 Pierre Lange mahogany cabinetry, $1,200,000 Avia high tech security & sound equipment, a 13 seat mahogany theatre w/true movie projection & D-box chairs that move with the movie action, a luxurious master suite w/bathroom of 6 ft. onyx slabs & fabulous boutique closets, 2 swimming pools including a solar heated lap pool & 20 car garages w/$400,000 ''show garage''! There is also a billiard rm, wine rm, piano rm, 3 family rms,exercise rm, 2 libraries, a 2 bedrm guest house,outdoor marble walkways & its own solar electric generating station hooked into APS! Bank references required.

MLS#4280401 John Hall & Associates

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Foothill Drive North
Paradise Valley, AZ

8 bedroom 12 bath
12,860 sq. ft.

$27,500,000

40 Acres on Mummy Mountain

Very private estate high on Mummy Mtn! Rare opportunity & tremendous buy! Enter thru electronic gates to a dramatic long drive past specimen landscaping,28 tree citrus grove & panoramic city & mtn views to an extraordinary 13,000 s.f. estate on large FLAT front & rear grounds. The home boasts 18 ft. high ceilings,floor-to-ceiling windows, telescoping doors, a 55 ft. gamerm w/its own complete kitchen,a lavish theatre, a dining rm with floor-to-ceiling mahogany wall,2 family rms, 7 bdrms,12 baths, wide elegant hallways, library,craft rm,exercise rm, & extensive patios. Grounds have magnificent plantings, lrg circular pool,rolling lawns,mini golf course,picnic area w/barbeque & mountain waterfall. The property also has been recently platted & recorded for 6 lots!

MLS#4272159 John Hall & Associates

AngelsRE Extreme Makeover of NICU Nesting Rooms at Scottsdale Healthcare

Hospital's Nursery Gets an Extreme Makeover

Thursday, 04 Nov 2010, 7:06 PM MDT
By ALEXIS VANCE
FOX 10 News

Meet Jennifer, Natasha and Christina - Charlie's Angels, well, not really, but they do call themselves the Real Estate Angels.

Dan Williams, Founder & President of The Williams Real Estate Company & "The Angels"

The three agents are with The Williams Real Estate Company and just finished redoing the parents' overnight room in the neonatal intensive care unit at Scottsdale Healthcare Shea.

"They are used every single night by parents who have a really sick baby or they're getting ready to go home," said SHS' Mary Luster.

NESTING ROOM BEFORE NESTING ROOM AFTER

Every time the real estate agents make a sale, they give a generous portion of their commission to a good cause. This was one of their main projects.

"When we very first saw the rooms, they are very sterile, a real hospital environment..cold feeling, small beds, foam pillows," said Natasha Greenhalgh.

KITCHEN BEFORE KITCHEN AFTER

"Going through so much we just feel that they deserved a more inviting atmosphere," said Jennifer Spenser.

"We feel very blessed that we are able to have business in this economy and we're very committed..we are professional women, but we all have children and families and anything we can do to give, we feel like it comes back around," commented Christina Catalano.

BATHROOM BEFORE BATHROOM AFTER

After painting, upgrading the beds, adding flat screen televisions and granite countertops, it's ready to be a temporary home for a family in need.

Fox 10 News: http://www.myfoxphoenix.com/dpp/news/local/scottsdale/real-estate-angels-nursery-makeover-11042010

AngelsRE would like to THANK:

T.J. Williams, Owner, Granite Concepts for donating the Granite Countertops in the Kitchen & Bathroom (Tel: 480.628.6345 TJHomes@Cox.net)



Shellie Wilson & Chris Cohen from Airpark Consignment who donated all of the furniture and their design skills to make the rooms beautiful. (Airpark Consignment, 7848 E. Redfield Road Scottsdale, AZ 85260 Tel: 480.951.7883 http://www.airparkconsignment.net/



Guillermo Hinojos of Comfort Pedic, Inc. for giving us a steal of a deal on the Comfort Pedic Mattresss ( 2949 N 30th Ave, Phoenix, AZ 85017-5402 Tel: 602.278.9330)




Steve & Michal Castle (Realtors® at The Williams Real Estate Company) for donating The Plasma TV



The Clinkenbeards, The Silmers, The Welsh's and the Saffords for making Cash Donations.

Dr. Jeff Kootman for donating toothpaste

Terry Dykshorn for donating the Bags and coupons for Care Packages

TOP 10 Real Estate Deals Foreclosures Scottsdale & Paradise Valley

TOP 10 REAL ESTATE DEALS

We have analyzed the current marketplace and have selected the Top 10 Properties that offer the Greatest Value at the Best Price.

THIS WEEK'S FOCUS

LENDER OWNED HOMES over $300,000 that have been on the market for more than 60 days

56th Street
Scottsdale, AZ
6 bedroom 3 bath
2723 sq. ft.

$300,000

Spacious, Single Level in Good Condition

BACK ON THE MARKET AND PRICED FOR IMMEDIATE SALE!!!! EXCELLENT BUYER OPPORTUNITY ON THIS SPACIOUS, SINGLE LEVEL, LENDER OWNED HOME. OVERALL CONDITION OF HOME IS GOOD. PREVIOUSLY USED AS AN ADULT CARE HOME. AWESOME LOCATION WITH A SCOTTSDALE (85254)MAILING ADDRESS!! LOVELY BACKYARD WITH MATURE FRUIT TREES AND FENCED POOL. HOME IS SOLD AS-IS WHERE IS WITH NO WARRANTIES OR REPRESENTATIONS EXPRESSED OR IMPLIED WHATSOEVER. NO SPDS OR CLUE REPORT AVAILABLE. SUBMIT ALL AS-IS OFFERS NOW FOR SELLER REVIEW & APPROVAL.

MLS#4488563 Realty Executives

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E. Windrose Drive
Scottsdale
4 bedroom 2.5 bath
2155 sq. ft.

$319,900

Big Backyard, 5 min. from Kierland/Airpark

You will not find a BETTER location. 5 minutes from the Airpark, 5 minutes to Kierland! This 4 Bedroom home with open greatroom and kitchen is a perfect space, not to big, not to small! Enjoy having people over and relaxing around your sparkling pool. Or send everyone packing and enjoy an evening in front of your fireplace. Back yard is BIG - room for play equipment. This home also boasts a 2 car garage, Big laundry room and tall mature trees to provide ample shade. Lowest price in the area! See this home with your REALTOR® today!

MLS#4444968 Coldwell Banker

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Via Encanto
Scottsdale
4 bedroom 2 bath
2459 sq. ft.

$359,900

McCormick Ranch, Re-Modeled Kitchen, Big Backyard

WOW! REDUCED! BANKS WANTS SOLD - BRING AN OFFER! Great Lender owned Property in the McCormick Ranch Area. Kitchen has been totally remodeled with cabinets ,appliances, granite and under mount sink. Guest bath has been partially remodeled with cabinates and granite. Newer travertine flooring, and multi pane windows. Backyard has a large diving pebble tec pool with a grassy area for the kids to play. Close to the freeway and shopping.

MLS#4436721 West USA Realty

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E. Shea Blvd
Scottsdale
4 bedroom 2.5 bath
2824 sq. ft.

$365,000

Lowest Price in Promontory Subdivision

BANK OWNED SINGLE LEVEL IN PROMONTORY* LOWEST PRICED HOME BY FAR IN THE SUBDIVISION* 2824 SQ.FT.* 4 BEDROOMS, 2.5 BATH* WOOD AND TILE FLOORING* VAULTED CEILINGS* OPEN KITCHEN TO FAMILY ROOM* OVEN,MICROWAVE AND DISHWASHER ARE IN GARAGE* 3 CAR GARAGE* GREAT SCHOOLS!!! There is a $75.00 buyer paid doc fee paid at closing.

MLS#4433427 Keyland Find Properties

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East Paradise Drive
Scottsdale
3 bedroom 2 bath
3100 sq. ft.

$399,000

Remodeled & Expanded

**CONTRACT AT INVESTOR FOR APPROVAL, ASSET MANAGER WILL LOOK AT NEW CASH OFFERS****LENDER OWNED, THIS IS NOT A SHORT SALE. REMODELED AND EXPANDED. TRAVERTINE FLOORS, REMODELED BATHS, REMODELED KITCHEN WITH GRANITE AND SS APPLIANCES. 4+ CAR GATED SIDE ENTRY GARAGE. GREAT CDS LOT, COVERED RAMADA WITH FIREPLACE. MULTIPLE FAMILY AREAS. SOLD AS IS.

MLS#4425481 Realty Executives

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N 87th Place
Scottsdale
4 bedroom 2,5 bath
2699 sq. ft.

$429,900

Custom Touches, Putting Green & Basketball Court

GORGEOUS 4 BEDROOM 2.5 BATH HOME WITH CUSTOM TOUCHES. GRANITE COUNTERS IN KITCHEN, WITH CENTER ISLAND, 2 FIREPLACES, LARGE COVERED PATIO WITH CEILING FANS, PUTTING GREEN, BASKETBALL COURT. INVITING FENCED POOL WITH WATERFALL FEATURE AND SPA. This is a Fannie Mae HomePath property.

MLS#4422 Mazat Realty

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North Horseshoe Trail
Scottsdale
5 bedroom 3.5bath
3315 sq. ft.

$439,900

Charming Santa Fe Style in Cul-De-Sac

Corporate Owned, Sold As Is. Repairs needed. Charming Santa Fe style home w/5Bed./3.5 Baths. Open Great Room w/Bar and cozy fireplace, Large Kitchen. 5th Bedroom can be office/den. Sparkling lap pool w/spa in back yard off the Covered Patio. Large backyard with stucco wall fence. Culdesac and cirular driveway with front covered entry way. 3 Car garage. 3% Earnest Money Deposit w/financing; 10% EMD/Cash buyers.

MLS#4410207 Coldwell Banker

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North 60th Street
Scottsdale
5 bedroom 4 bath
4139 sq. ft.

$549,900

Exquisite Living with Guest Quarters & Entertainer's Backyard

Exquisite Living, boasting beautiful faux paints, impressive ceilings, French exits and fine finishes. Lavish chef's kitchen with granite, caramelized Maple cabinetry and stainless double ovens and Sub-Zero refrigerator. Romantic master hosts his/her custom closets and jetted tub. Convenient Jack and Jill. Wet bar with all the trimmings. Handsome fireplace, tremendous travertine, delightful sauna. Complete guest quarters with wet bar, family room, sumptuous bed and bath and private exit. Entertainer's yard with covered patio, safely fenced pool with beach entry and lush emerald green grass.

MLS#4419902 Atlantic & Pacific Real Estate

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E. Calle De Mandel
Scottsdale
6 bedroom 6 bath
5628 sq. ft.

$579,900

Gorgeous Home with Separate Casita & Theater

Gorgeous home with a separate casita. Top quality finishes, granite counter tops, custom cabinets, beautiful travertine and marble floors, and more. Spacious Master bedroom retreat, gourmet kitchen, theater! Home is located on a large private lot. AHS Home Warranty included. Days 1-7: Offers will not be reviewed, Days 8-12: Offers ONLY from NSP buyers, Municipalities, Non-profit organizations and Owner-occupants will be reviewed. Days 13+: Offers from all buyers will be considered.

MLS#4428801 Russ Lyon Sotheby's

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North 43rd Place
Paradise Valley
5 bedroom 6 bath
8912 sq. ft.

$982,722

Finish this house! Amazing Views of Camelback & Mummy Mountains

Finish this house! Floor plans in document section. Amazing views of Camelback mountain, Mummy Mountain and the Phoenix Mountain Preserve. This home offers a dramatic entry with dual spiral staircases, courtyard, guest house, of course each room has a private bath, formal library, media room and what more can you ask for. This is perfect for your builder sitting on the sideline waiting for an opportunity! Chain link fenced project to protect what is there and YOU! Existing pool needs remo and landscape is ready for design. $75 doc fee to apply.
MLS#440320 Keller Williams Integrity First

Foreclosure Freeze What Does it Mean to You

Foreclosure Freeze – What does it Mean to You?
By Chris Mozilo, CMB
November 10, 2010

We hear news stories about loan servicers stopping or “freezing” foreclosures.




Why are they doing this, and what does it mean to you?

Due to the growing volume of foreclosures that the largest loan servicers (typically large banks) are dealing with, they found some creative ways to be more efficient.

The process of completing a foreclosure can be time consuming and very expensive for a loan servicer, especially in the 23 states that require judicial foreclosures (Arizona does not require judicial foreclosures).

To save time and manpower, loan servicers had employees sign foreclosure documents and affidavits stating they read the documents without actually taking the time to read them.

There were also “robo-signers” that created computer generated signatures on these documents.

When this practice came to light, attorneys drooled at the prospect of class action lawsuits on behalf of improperly foreclosed homeowners against “evil” banks.

In response, loan servicers stopped foreclosures in the 23 judicial foreclosure states.


In addition, the largest loan servicer – Bank of America – stopped all foreclosures across the country for a period of time. B of A has since reviewed their foreclosure practices and has re-started foreclosures.


Other servicers have followed. Here in Arizona, all the major loan servicers are actively foreclosing homes.

However due to the mammoth number of foreclosures, the process may take several months and in some cases over a year.

Foreclosures are a considered to be a negative factor in our real estate market because they contribute to a decline in values by adding more homes to the available inventory.

But they are actually very important to the recovery of the market.

WHY?

Foreclosures take a property that was not affordable for a person or family and resets the property to become affordable for another person or family.

It takes time, but the process of taking unaffordable homes and converting them to affordable homes is the bad-tasting medicine that will cure our ailing housing market.

If you are in a position to purchase a home to live in or as an investment, buying today at “reset” prices is a smart decision.

If you have any questions about financing a home, interest rates, how to repair your credit score etc., please feel free to give me a call.







Chris Mozilo, CMB

Chris Mozilo NMLS# 183726; AZ LO-0912308; BKBR-0115591; CA-DOC 183726

Adjustable Interest Mortgage - Good Results

There has been talk in various publications and news outlets about the second wave of defaults that are due to when ARM's (Adjustable Rate Mortgages) reset over the next couple of years. For some time now when hearing these reports I have wondered why the thinking is the resets would be a bad thing as interest rates are at historic lows, wouldn't the interest rates on these loans adjust lower?
While this may not be true for all I have just seen two rate adjustments that are dramatic and in the right direction for a homeowner who also holds an investment property. In this case the primary residence rate adjusted from 6.625% to 2.75% and the investment property adjusted from 6% to 2.75%. The change in these two rates reduced the combined payments by $1,352.00 per month. This is an annual expense reduction of over $16,000.00, this made for a very happy homeowner.
Next time news outlets report the "second wave" of mortgage resets as a coming disaster just remember that rates adjust both ways, with the current rates the resets could be welcome news.